Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Conditional bond

  • 18 Jan 2001

    DRAGAGES ET TRAVAUX PUBLICS (HK) LTD. v. DRAGAGES ET TRAVAUX PUBLICS (HK) LTD.

    Citation
    DRAGAGES ET TRAVAUX PUBLICS (HK) LTD. v. DRAGAGES ET TRAVAUX PUBLICS (HK) LTD.
    Court
    Court of Appeal
    Case number
    CACV281/2000

    The bond's operative wording required the surety to "satisfy and discharge any claims, actions, damages, losses, charges, costs or expenses" and therefore liability required assessment of default and damages; absence of clear, unambiguous pay-on-demand language meant the bond was a conditional (double) bond and not an on-demand bond, so summary judgment was inappropriate; the appeal was allowed and conditional leave to defend was granted subject to the whole bonded sum being paid into court within seven days.

  • 23 Dec 1987

    TINS\' INDUSTRIAL CO LTD v. KONO INSURANCE LTD

    Citation
    TINS\' INDUSTRIAL CO LTD v. KONO INSURANCE LTD
    Court
    Court of Appeal
    Case number
    CACV136/1987

    The bond before the court was a conditional (double) bond requiring the claimant to prove breach by the contractor and resulting damages; the trial judge was wrong to treat it as an on‑demand bond and to grant summary judgment under Order 14 where disputed facts existed (notably conflicting instructions of 26 November and whether repudiation was by contractor or developer); appeal allowed and defendant given unconditional leave to defend.